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MASD Will Approve New Budget Next Week
Charter schools, salaries and benefits represent 70% of expenses
By Adam Reinherz
The Tube City Almanac
April 05, 2024
Posted in: McKeesport and Region News
(Adam Reinherz photo)
McKeesport Area School District will vote to adopt a preliminary budget for 2024-25 during next week’s school board meeting. Business manager Joseph Villella presented the report at the district’s open agenda meeting Thursday.
MASD’s budget for the 2024-25 is projected to be $82.8 million, a $3.28 million decrease from the 2023-24 budget.
Total revenue is expected to be $82.47 million, a decrease of $9.9 million from the 2023-24 budget.
Revenue decline is due to the end of funding from the American Rescue Plan’s Elementary and Secondary School Relief program, Villella said.
Established and appropriated by congress, ESSER funded support COVID-19 response efforts, according to Pennsylvania’s Department of Education. MASD had received two previous iterations of ESSER funding.
The 2023-24 budget included more than $11 million from ESSER III funds, Villella said: “As of September 2024 that ESSER money is going away.”
The business manager told board members that as of June 30, 2023, the unassigned fund balance is $9,494,000; and though the 2024-25 budget uses $353,184 to balance the budget, the actual fund balance of June 30, 2024 will remain unknown until the audit is complete.
Salaries and benefits account for $46.4 million, 56 percent of MASD’s preliminary budget.
Health insurance rates have not been set yet, however, the budget projects a 12 percent increase from the previous year. Similarly, the preliminary budget sets a 3 percent increase for charter schools.
With tuition and other charter schools costs at $11.7 million, and salaries and benefits at $46.4 million, 70 percent of the budget goes to these “biggest expenses,” Villella said: “That’s something to always keep in mind.”
Of note, the business manager added, is that the preliminary budget does not call for a tax increase.
“Let’s make that very clear that the school district is not raising taxes, which is a very good point,” MASD board president Mark Holtzman said. “So many folks are on fixed income and seniors in this community.”
Data from the U.S. Census Bureau indicates that whereas the median household income in Pennsylvania is $71,798, that sum is nearly $40,000 less in McKeesport.
With a median household income of $31,635, 28.9 percent of McKeesport residents are living in poverty. The bulk of those living in poverty (45.1 percent) are under age 18.
Adam Reinherz is a freelance writer. He can be reached at adam.reinherz@gmail.com.
Originally published April 05, 2024.
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